As you’ll be aware, there are some real pricing pressures in the food market at the moment; and these pressures will continue through Brexit negotiations. The School Food Standards 2015 also place several expectations on school caterers including: providing appetising, nutritious meals to children and increasing the uptake of school meals whilst instilling healthy eating habits in children from an early age; all having to be achieved within tight budgets making it an almost impossible task. Source: schoolfoodplan.com
The low value of the pound has had a massive impact on food prices. Before the EU Referendum, a pound bought you €1.30. Today, the pound is worth around €1.12, with some commentators predicting parity with the Euro if Brexit negotiations fail. The UK imports around half of all its food so is directly affected by Euro/Dollar exchange rates. Source: bbc.co.uk
Environmental issues have impacted on supply of many staple catering items. Tuna, for example, is high in price due to an adverse climate in the Pacific, which has caused fish to migrate out of normal fishing areas, reducing the catch. Closer to home, poor harvests in Europe will affect apple juice, plum tomatoes and other harvested vegetables. YPO has extensive market knowledge which we use to negotiate competitive pricing and advise our customers of market conditions. Source: The Grocer
Pricing pressures cannot be avoided; however, they can be mitigated. At YPO, we work closely with our customers to review their shopping baskets. We encourage customers to reduce use of those items which have increased the most in price, we actively source alternative brands to create a price saving and we offer support using a range of EU compliant frameworks so that our customers’ contractual arrangements are continually giving them best value.
- Louise Hardcastle, YPO Food Buyer | firstname.lastname@example.org | ypo.co.uk/food | 01924 834 834